THOUSANDS of BT telephone customers will see their bills rise in the coming months - despite the company's decision to abolish its standard rate for residential subscribers.

Competitors said that although BT's "average users" will see reductions in bills of around £24 a year, a further 2.5m customers, who are billed by BT for their line rental but pay another provider for their calls, are expected to see bills rise by £12 a year.

Jon Miller of uSwitch.com, the independent price comparison website, said it was encouraging to see that in most cases BT customers will see bills decrease, but added: "It's disappointing to see that BT's changes will have a negative effect on some customers.

"We fully expect the CPS (carrier pre-selection) suppliers to react strongly, with further price reductions anticipated in the coming weeks.

"Whilst the cost of calling may be coming down, the fact remains that consumers will still be charged a minimum £31.50 a quarter before they've even made a call.

"BT is still not the cheapest supplier in the market. Switching is easy and you can make significant savings by shopping around."